ICAI Handbook on Corporate Insolvency Resolution Process under The Insolvency and Bankruptcy Code, 2016
The implementation of the Corporate Insolvency Resolution Process (CIRP) under The Insolvency and Bankruptcy Code, 2016 began when the provisions relating to insolvency and liquidation of corporate persons came into force on December 2016, thus paving the journey of the Code and building a strong insolvency regime in the country to improve the Ease of Doing Business. Both the Debtors and Creditors have started to derive benefits with the implementation of the Code in the debt resolution space.
During last four years, several achievements have been made in the form of number of cases getting initiated under CIRP, number of cases getting successfully resolved, the amount realized by the creditors in comparison to their claims and the various judicial pronouncements that are made on issues under the Code. All these achievements could be made because of the effective functioning of the institutions involved in administration and execution of the process of insolvency resolution under the Code.
With the enactment of the framework for Insolvency Resolution and Liquidation for Corporate Persons under the Insolvency and Bankruptcy Code, 2016 a new era is born in the debt resolution space in the country. Since the provisions relating to Corporate Insolvency Resolution Process (CIRP) came into effect from December 1, 2016, a total of 4376 CIRPs have commenced by the end of March, 2021, as per IBBI data. Of these, 2653 have been closed. Of the CIRPs closed, 348 have ended in approval of Resolution Plans.
The Insolvency Professional as Interim Resolution Professional/Resolution Professional play a critical role in the conduct of the CIRP which include receiving and collating all the claims submitted by creditors pursuant to the public announcement, constituting Committee of Creditors (CoC), managing the operations of the Corporate Debtors as a going concern, preparation of Information Memorandum, inviting prospective Resolution Applicants, presenting all Resolution Plans at the meetings of the CoC and submitting the Resolution Plan as approved by CoC to the Adjudicating Authority.
Considering the significance of CIRP under the Code, the Committee on Insolvency & Bankruptcy Code of ICAI has taken the initiative to bring out this publication –Handbook on Corporate Insolvency Resolution Process under The Insolvency and Bankruptcy Code, 2016 so as to help members appreciate the important provisions relating to CIRP under the Code.